Huawei Technologies reported a 36% year-on-year decline in net profit for the first half of 2024, despite a 9.9% increase in revenue to €60.02bn. Net income fell to €3.05bn from €4.76bn in the same period last year, as rising costs and elevated research and development spending weighed on margins.
Total expenditures on new product development rose 25% to €15.57bn, reflecting the company’s accelerated push for technological self-reliance. Huawei said the investments are part of a broader strategy to reduce dependence on foreign technology, particularly in high-performance processors for artificial intelligence and components for autonomous driving systems. The company also manufactures smartphones and 5G network equipment.
The company did not provide full-year guidance in its interim results. Huawei’s latest figures underscore the financial strain from its pivot toward domestic supply chains amid ongoing U.S. trade restrictions and broader geopolitical pressures affecting global technology markets.
